[Federal Register Volume 79, Number 104 (Friday, May 30, 2014)]
[Rules and Regulations]
[Pages 31187-31193]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-12387]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1, 4, 12, 22, and 52
[FAC 2005-74; FAR Case 2012-024; Item I; Docket No. 2012-0024, Sequence
No. 1]
RIN 9000-AM49
Federal Acquisition Regulation; Commercial and Government Entity
Code
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the
Federal Acquisition Regulation (FAR) to require the use of Commercial
and Government Entity (CAGE) codes, including North Atlantic Treaty
Organization (NATO) CAGE (NCAGE) codes for foreign entities, for awards
valued at greater than the micro-purchase threshold. The CAGE code is a
five-character alpha-numeric identifier used extensively within the
Federal Government. The rule will also require offerors, if owned by
another entity, to identify that entity.
DATES: Effective: November 1, 2014.
FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb, Procurement Analyst,
at 202-501-0650, for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat at 202-501-4755. Please cite FAC 2005-74, FAR Case 2012-
024.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 78 FR 23194 on April 18, 2013, soliciting public comments
on the proposed rule and received one response.
DoD, GSA, and NASA are revising the FAR to require that offerors
provide their CAGE codes to contracting officers and that, if owned by
another entity, offerors will provide, in a new provision with their
representations and certifications, the CAGE codes and names of such
entity or entities. For those offerors located in the United States or
its outlying areas that register in the System for Award Management
(SAM), a CAGE code is assigned as part of the registration process. If
SAM registration is not required, the offeror must request and obtain a
CAGE code from the Defense Logistics Agency (DLA) Contractor and
Government Entity (CAGE) Branch. A CAGE code is not required when a
condition described at FAR 4.605(c)(2) applies and the acquisition is
funded by an agency other than DoD or NASA. Offerors located outside
the United States will obtain an NCAGE from their NATO Codification
Bureau or, if not a NATO member or sponsored nation, from the NATO
Support Agency (NSPA).
The Federal procurement community strives toward greater measures
of transparency and reliability of data, to facilitate achievement of
rigorous accountability of procurement dollars, processes, and
compliance with regulatory and statutory acquisition requirements,
e.g., the Federal Funding and Accountability and Transparency Act of
2006 (Pub. L. 109-282, 31 U.S.C. 6101 note). Increased transparency and
accuracy of procurement data broaden the Government's ability to
implement fraud detection technologies restricting opportunities for
mitigating occurrences of fraud, waste, and abuse of taxpayer dollars.
To further the desired increases in traceability and transparency,
this rule uses the unique identification that a CAGE code provides,
coupled with vendor representation of ownership and owner CAGE code.
The CAGE code is a five-character alpha-numeric identifier used
extensively within the Federal Government and will provide for
standardization across the Federal Government. This rule will support
successful implementation of business tools that provide insight into--
--Federal spending patterns across corporations;
[[Page 31188]]
--Traceability in tracking performance issues across corporations;
--Contractor personnel outside the United States; and
--Supply chain traceability and integrity efforts.
II. Discussion and Analysis
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (the Councils) reviewed the public comment in the
development of the final rule. A discussion of the comment and the
changes made to the rule as a result of the comment are provided as
follows:
A. Summary of Significant Changes
1. Modification of the definitions within the new provision at
52.204-17; ``owner'' has been deleted and the definitions of
``immediate owner'' and ``highest-level owner'' clarified so that--
a. Ownership is defined as having ownership or control, and the
definition of immediate owner includes examples of the indicators of
control; and
b. An immediate owner has at most one highest-level owner.
2. Direction was added to paragraph (b) of the provision to enable
offerors comprised of more than one entity, i.e., joint ventures, to
respond appropriately.
B. Analysis of Public Comment
Comment: The respondent indicated that the purposes of the changes
in the proposed rule are not clear and make commenting on the rule
difficult. For example, how does this rule support greater traceability
or integrity of the supply chain? What is the Government's objective?
Will contractors be required to have CAGE codes for every site at which
work is performed? Does the proposed rule intend to add a CAGE code for
the shipment function?
Response: The purpose of the rule, as stated in the background
section of the preamble for the final rule is to (1) support successful
implementation of business tools that seek insight into Federal
spending patterns across corporations; (2) facilitate traceability in
the tracking of performance issues across corporations; (3) provide
insight on contractor personnel outside the United States (at a
corporate/full organization level); and (4) support supply chain
traceability and integrity efforts. The use of the CAGE code provides a
Government-managed unique identifier for these entities; and the final
rule provides a mechanism for the entities themselves to identify their
hierarchical structure to the Government.
The final rule requires a CAGE code assignment for the entity (with
its specific name and physical address) to whom the Government awards
the contractual instrument, i.e., that entity noted on the front page
of the contract document; and the final rule requires obtaining the
immediate and highest-level owner's CAGE codes and legal names. The
rule does not require CAGE code assignment to shipping and performance
locations.
Comment: The respondent indicated that the proposed rule adds
additional costs to the process not recognized in the proposed rule.
This relates to usability issues with SAM. The respondent stated that
the rule did not adequately support the burden estimates within the
rule and noted that industry conducted a hierarchy assessment and this
took well over an hour without the additional revalidations required by
SAM. The respondent suggested republishing the rule for public comment
after clarifying the issues raised.
Response: Obtaining a CAGE code is already a requirement for an
active registration in SAM and for its predecessors the Online
Representations and Certifications (ORCA) and the Central Contractor
Registration (CCR) database. This final rule does not impose any new
burden in that regard. Burden for registration in SAM was re-assessed
as part of the rulemaking in the FAR case (FAR Case 2011-021) that
established that requirement. Additionally, this final rule does not
require the use of SAM to obtain the CAGE code(s) for the immediate
owner or highest-level owner, although registration in SAM could be
accomplished for U.S. registrants since U.S. registrants are assigned a
CAGE code upon registration. It is true that it may take some time for
larger organizations to update all contractor SAM registrations to
include the immediate and highest-level owner CAGE information (if the
contractor has hundreds of SAM records and if it updates them centrally
and at the same time). However, including the data on an individual
registration or on a renewal basis should not result in any significant
additional time.
Comment: The respondent indicated that the proposed rule is unclear
on the treatment of companies owned by foreign entities and U.S. based
companies with business units performing work overseas for the U.S.
Government.
Response: Foreign entities would not be exempted from this
requirement. The rule also applies to U.S. companies, regardless of
where work is performed.
Comment: The respondent stated that the proposed rule is unclear on
the treatment of foreign Governments.
Response: Foreign governments, if receiving contracts from the U.S.
Government, are required to have an NCAGE code as a result of this
rule. In all practicality, if they are registered in SAM as they should
be, they already do have an NCAGE code. For the questions related to
ownership, foreign governments would indicate that they have no higher
level owner.
Comment: The respondent indicated that the proposed rule is unclear
on the treatment of commercial entities. Will purely commercial
companies be required to have CAGEs? How will primes deal with
commercial companies that do not wish to obtain a CAGE? How will primes
address hierarchy issues associated with commercial companies that have
a CAGE? How will additional costs be addressed? Are primes responsible
for the currency of their commercial company subcontractor reporting?
Response: The rule applies to contractors with commercial contracts
based upon the Councils' determination that applying this requirement
to commercial contracts is necessary to fulfill the purpose of the
rule. All entities reported as an immediate owner or highest-level
owner of the offeror under the rule must have CAGE Codes. This final
rule does not require subcontractors to have CAGE codes.
Comment: The respondent indicated that the rule is unclear on how
Limited Liability Companies (LLCs) and joint ventures are to be
treated. Also the definitions of owner, immediate owner and highest-
level owner need to be clarified.
Response: The definitions have been clarified and the issue of
joint ventures has been specifically addressed in the representation.
Being a single legal entity, an LLC will be treated as any other
offeror would. In addition, the term ``business entity'' was revised to
use the term ``entity'' which, in this context, means a ``legal
entity'', such as those entities listed at FAR 4.102.
Comment: The respondent stated that the requirement to provide
ownership and control information on a proposal/contract basis is
reversed by this rule and requires a large amount of resources. The
respondent questioned why this information cannot be addressed when the
CAGE is established. Managing at the proposal/contract level implies
that changes in ownership and control would require a contract
modification rather than CAGE code updates. Ownership and control
[[Page 31189]]
information is managed centrally within many large government
contractors.
Response: The implementation of this requirement will occur by
incorporating the collection of data into the annual representations
and certifications section of a prime contractor's SAM registration.
This means that contractors will only be required to provide the
information once and then update/renew it on an annual basis when they
renew their SAM registration. As for later offers, the FAR requires the
offeror to either update SAM or list the updated information on the
offer (see 52.204-8(d)).
Comment: The respondent indicated that corporate linkage
information is already being provided by Dun and Bradstreet in SAM by
DUNS Number.
Response: There is some corporate linkage in SAM provided by the
commercial entity, Dun & Bradstreet (D&B); however, the methodology by
which D&B establishes ownership is proprietary and does not necessarily
conform to the definitions in this case. The final rule instead
establishes the use of a Government-managed unique identifier governed
by established international rules (under NATO). Additionally, the rule
provides the contractor the opportunity to provide what it believes is
the correct information, rather than relying on information from an
outside commercial source.
Comment: The respondent indicated that the proposed rule at FAR
subpart 4.18 does not address which system is the master record for
CAGE code information; it fails to outline the order of precedence for
CAGE systems, particularly between the DLIS Master Cage code listing
and SAM.
Response: The planned implementation will be to collect the
information via SAM, as a part of the contractor's registration. That
information collected will be transmitted to the actual CAGE code
system, managed by the Defense Logistics Agency (DLA) on behalf of the
Federal Government.
Comment: The respondent indicated that Standard Form (SF) 26, 30,
33, and Optional Form (OF) 307 forms already provide a place to input
the CAGE code, which is not mentioned in the proposed rule.
Response: The standard forms referenced actually only provide a
field for ``Code'' which is not specifically identified as the CAGE
code, although DoD uses it that way.
III. Principal Changes to the FAR Resulting From This Rule
A. Changes to FAR Part 4
1. FAR 4.1202. A new provision for ownership or control of offeror
is added to the list of representations and certifications under FAR
4.1202.
2. Addition of FAR subpart 4.18, Commercial and Government Entity
Code. A new subpart is added to include scope, policy, and definitions
for the subpart. Offerors are required to provide their CAGE codes to
the contracting officer, to represent if they are owned by another
entity, and, if so, give the legal name and CAGE code for the
entity(s), unless a condition listed at FAR 4.605(c)(2) applies and the
acquisition is funded by an agency other than DoD or NASA. The subpart
also gives instruction to contracting officers to verify the CAGE codes
provided.
3. A definition of ``Commercial and Government Entity code'' is
provided. The definition encompasses both the CAGE code for entities
located in the United States or its outlying areas, and the NCAGE code
if the code is assigned by a NATO Codification Bureau or NATO Support
Agency (NSPA).
4. The rule includes definitions of ``highest-level owner'' and
``immediate owner.'' The intent behind defining ``ownership'' is to
describe how entities relate to one another in terms of their
hierarchical relationships. The final rule established the definitions
as follows:
Highest-level owner means the entity that owns or controls
an immediate owner of the offeror or that owns or controls one or more
entities that own or control an immediate owner of the offeror. No
entity owns or exercises control of the highest-level owner.
Immediate owner means an entity other than the offeror,
that has direct control of the offeror. Indicators of control include,
but are not limited to, one or more of the following: Ownership or
interlocking management, identity of interests among family members,
shared facilities and equipment, and the common use of employees.
5. The term ``business entity'' was revised to the term ``entity''
throughout the rule. In this context, the term ``entity'' means a
``legal entity'', such as those entities listed at FAR 4.102.
B. Changes to FAR Subpart 12.3
With respect to commercial items, changes to the list of other
required provisions and clauses at FAR 12.301(d) are included to
reflect that CAGE code reporting and maintenance are applicable to
commercial items. This is accomplished by including the new provision,
FAR 52.204-16, Commercial and Government Entity Code Reporting, and the
new clause, FAR 52.204-18, Commercial and Government Entity Code
Maintenance.
C. Changes to FAR Part 52
1. A new provision, FAR 52.204-16, Commercial and Government Entity
Code Reporting, has been added, providing information on obtaining CAGE
codes and requiring offerors to provide their CAGE codes.
2. A new provision, FAR 52.204-17, Ownership or Control of Offeror,
requires the offeror to identify if it is owned by another entity(s)
and, if so, to provide the legal name and CAGE code of such entity(s).
3. A new clause, FAR 52.204-18, Commercial and Government Entity
Code Maintenance, provides instructions to contractors to maintain
accurate CAGE information in the CAGE file and to inform their
contracting officers if their CAGE codes change.
4. The rule also amends the FAR provision 52.204-8, Annual
Representations and Certifications, by including the new provision
52.204-17, Ownership or Control of Offeror.
5. The rule also amends the provision at 52.212-3, Offeror
Representations and Certifications--Commercial Items, by including
definitions and ownership representations.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
V. Regulatory Flexibility Act
DoD, GSA, and NASA have prepared a Final Regulatory Flexibility
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5
U.S.C. 601, et seq. The FRFA is summarized as follows:
A number of initiatives have surfaced in and across the Federal
Government which have specific implication to the Federal
[[Page 31190]]
procurement community. Goals of these initiatives, which include the
Federal Funding Accountability and Transparency Act (Pub. L. 108-
282, 31 U.S.C. 6101 note), further the President's commitment to
make the Federal Government transparent and accountable to the
American people. The changes identified in this rule will further
the procurement community's efforts toward greater measures of
transparency and reliability of data, reducing occurrences of fraud,
waste, and abuse of taxpayer dollars.
This change will require use of the Commercial and Government
Entity (CAGE) code referred to as North Atlantic Treaty Organization
(NATO) CAGE (NCAGE) code for foreign entities, a five-character
alpha-numeric identifier used extensively within the Federal
Government that will provide for vendor identification
standardization. Further, the change will couple vendor use of CAGE
code with vendor identification of ownership and owner CAGE code.
This change will lead to increases in data traceability and
transparency, thereby broadening the Government's ability to, among
other things, implement fraud detection technologies.
The rule will require vendors that do not already have a CAGE to
obtain one. Only vendors that meet a registration exception of FAR
subpart 4.11, but not an exception to subpart 4.6, will need to
separately obtain a CAGE. It is estimated that 2,154 vendors will be
required to obtain a CAGE code. It is estimated that 741 of these
vendors are small businesses.
This rule would also affect offerors that are owned by another
entity. This rule would require an offeror to represent that, if it
is owned by another entity, it has entered the CAGE code and name of
that entity. Approximately 413,808 unique vendors submitted offers
for Federal Government awards in Fiscal Year 2011, and approximately
275,872 of these offers were from unique small businesses.
There were no public comments submitted by the Chief Counsel for
Advocacy of the Small Business Administration.
There are no significant alternatives to accomplish the stated
objectives of this rule.
Interested parties may obtain a copy of the FRFA from the
Regulatory Secretariat. The Regulatory Secretariat has submitted a copy
of the FRFA to the Chief Counsel for Advocacy of the Small Business
Administration.
VI. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) applies. The
rule contains information collection requirements. The Office of
Management and Budget (OMB) has cleared this information collection
requirement under OMB Control Number 9000-0185, titled: Commercial and
Government Entity Code. In response to the notice of proposed
rulemaking and the request for comment on the burden estimates, one
respondent did question the burden estimates. The respondent indicated
that the rule adds additional costs to the process not recognized in
the rule. This relates to usability issues with SAM. The respondent
indicated that, as a pilot, industry conducted hierarchy assessment and
this took well over an hour without the additional revalidations
required by SAM. The respondent requested that the FAR Council
republish the rule for public comment after clarifying the issues
raised.
The FAR Council determined that a revision to the Paperwork Burden
is not warranted. Obtaining a CAGE code is already a requirement for an
active registration in SAM and for its predecessors the Online
Representations and Certifications (ORCA) and the Central Contractor
Registration (CCR) database. This final rule applies no new burden in
that regard. Burden for registration in SAM was re-assessed as part of
the rulemaking in the FAR case (FAR Case 2011-021) that established
that requirement. Additionally, this final rule does not require the
use of SAM to obtain the CAGE code(s) for the immediate owner or
highest-level owner; although registration in SAM could be accomplished
to do so for U.S. registrants (as U.S. registrants are assigned a CAGE
code upon registration). It is true that it may take some time in
larger organizations to update all of the contractor's SAM
registrations to include the immediate and highest-level owner CAGE
information (if the contractor has hundreds of SAM records and it is
updating them centrally and at the same time). However, including the
data on an individual registration or renewal basis should not result
in any significant additional time.
List of Subjects in 48 CFR Parts 1, 4, 12, 22, and 52
Government procurement.
Dated: May 22, 2014.
William Clark,
Acting Director, Office of Government-wide Acquisition Policy, Office
of Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 4, 12, 22, and
52 as set forth below:
0
1. The authority citation for 48 CFR parts 1, 4, 12, 22, and 52
continues to read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM
1.106 [Amended]
0
2. Amend section 1.106 in the table following the introductory text, by
adding in sequence, FAR segments ``52.204-16'', ``52.204-17'', and
``52.204-18'' and the corresponding OMB Control Number ``9000-0185''.
PART 4--ADMINISTRATIVE MATTERS
0
3. Amend section 4.605 by adding a sentence to the end of paragraph (b)
to read as follows:
4.605 Procedures.
* * * * *
(b) * * * (For a discussion of the Commercial and Government Entity
(CAGE) Code, which is a different identification number, see subpart
4.18.)
* * * * *
0
4. Amend section 4.1202 by redesignating paragraphs (e) through (bb) as
paragraphs (f) through (cc), respectively; and adding a new paragraph
(e) to read as follows:
4.1202 Solicitation provision and contract clause.
* * * * *
(e) 52.204-17, Ownership or Control of Offeror.
* * * * *
0
5. Add subpart 4.18 to read as follows:
Subpart 4.18--Commercial and Government Entity Code
Sec.
4.1800 Scope of subpart.
4.1801 Definitions.
4.1802 Policy.
4.1803 Verifying CAGE codes prior to award.
4.1804 Solicitation provisions and contract clause.
Subpart 4.18--Commercial and Government Entity Code
4.1800 Scope of subpart.
(a) This subpart prescribes policies and procedures for
identification of commercial and government entities. The Commercial
and Government Entity (CAGE) code system may be used, among other
things, to--
(1) Exchange data with another contracting activity, including
contract administration activities and contract payment activities;
(2) Exchange data with another system that requires the unique
identification of a contractor entity; or
(3) Identify when offerors are owned or controlled by another
entity.
(b) For information on the Data Universal Numbering System (DUNS)
[[Page 31191]]
number, which is a different identification number, see 4.605 and the
provisions at 52.204-6 and 52.204-7.
4.1801 Definitions.
As used in this part--
Commercial and Government Entity (CAGE) code means--
(1) An identifier assigned to entities located in the United States
or its outlying areas by the Defense Logistics Agency (DLA) Contractor
and Government Entity (CAGE) Branch to identify a commercial or
government entity; or
(2) An identifier assigned by a member of the North Atlantic Treaty
Organization (NATO) or by the NATO Support Agency (NSPA) to entities
located outside the United States and its outlying areas that the DLA
Contractor and Government Entity (CAGE) Branch records and maintains in
the CAGE master file. This type of code is known as an NCAGE code.
Highest-level owner means the entity that owns or controls an
immediate owner of the offeror, or that owns or controls one or more
entities that control an immediate owner of the offeror. No entity owns
or exercises control of the highest level owner.
Immediate owner means an entity, other than the offeror, that has
direct control of the offeror. Indicators of control include, but are
not limited to, one or more of the following: Ownership or interlocking
management, identity of interests among family members, shared
facilities and equipment, and the common use of employees.
4.1802 Policy.
(a) Commercial and Government Entity code. (1) Offerors shall
provide the contracting officer the Commercial and Government Entity
(CAGE) code assigned to that offeror's location prior to the award of a
contract action above the micro-purchase threshold, when there is a
requirement to be registered in SAM or a requirement to have a DUNS
Number in the solicitation.
(2) The contracting officer shall include the contractor's CAGE
code in the contract and in any electronic transmissions of the
contract data to other systems when it is provided in accordance with
paragraph (a)(1) of this section.
(b) Ownership or control of offeror. Offerors, if owned or
controlled by another entity, shall provide the contracting officer
with the CAGE code and legal name of that entity prior to the award of
a contract action above the micro-purchase threshold, when there is a
requirement to be registered in SAM or a requirement to have a DUNS
Number in the solicitation.
4.1803 Verifying CAGE codes prior to award.
(a) Contracting officers shall verify the offeror's CAGE code by
reviewing the entity's registration in the System for Award Management
(SAM). Active registrations in SAM have had the associated CAGE codes
verified.
(b) For entities not required to be registered in SAM, the
contracting officer shall validate the CAGE code using the CAGE code
search feature at http://www.dlis.dla.mil/cage_welcome.asp.
4.1804 Solicitation provisions and contract clause.
(a) Insert the provision at 52.204-16, Commercial and Government
Entity Code Reporting, in all solicitations that include--
(1) 52.204-6, Data Universal Numbering System Number; or
(2) 52.204-7, System for Award Management.
(b) Insert the provision at 52.204-17, Ownership or Control of
Offeror, in all solicitations that include the provision at 52.204-16,
Commercial and Government Entity Code Reporting.
(c) Insert the clause at 52.204-18, Commercial and Government
Entity Code Maintenance, in all solicitations and contracts when the
solicitation contains the provision at 52.204-16, Commercial and
Government Entity Code Reporting.
PART 12--ACQUISITION OF COMMERCIAL ITEMS
0
6. Amend section 12.301 by revising paragraph (d) to read as follows:
12.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
* * * * *
(d) Other required provisions and clauses. Notwithstanding
prescriptions contained elsewhere in the FAR, when acquiring commercial
items, contracting officers shall be required to use only those
provisions and clauses prescribed in this part. The provisions and
clauses prescribed in this part shall be revised, as necessary, to
reflect the applicability of statutes and executive orders to the
acquisition of commercial items.
(1) Insert the provision at 52.204-16, Commercial and Government
Entity Code Reporting, when there is a requirement to be registered in
SAM or a requirement to have a DUNS Number in the solicitation.
(2) Insert the clause at 52.204-18, Commercial and Government
Entity Code Maintenance, when there is a requirement to be registered
in SAM or a requirement to have a DUNS Number in the solicitation.
(3) Insert the provision at 52.209-7, Information Regarding
Responsibility Matters, as prescribed in 9.104-7(b).
(4) Insert the clause at 52.225-19, Contractor Personnel in a
Designated Operational Area or Supporting a Diplomatic or Consular
Mission outside the United States, as prescribed in 25.301-4.
(5) Insert the clause at 52.232-40, Providing Accelerated Payments
to Small Business Subcontractors, as prescribed in 32.009-2.
* * * * *
PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
22.1006 [Amended]
0
7. Amend section 22.1006 by--
0
a. Removing from paragraph (a)(2)(i)(C) ``52.204-8(c)(2)(iii) or (iv)''
and adding ``52.204-8(c)(2)(iv) or (v)'' in its place;
0
b. Removing from paragraph (e)(2)(i) ``52.204-8(c)(2)(iii)'' and adding
``52.204-8(c)(2)(iv)'' in its place; and
0
c. Removing from paragraph (e)(4)(i) ``52.204-8(c)(2)(iv)'' and adding
``52.204-8(c)(2)(v)'' in its place.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
8. Amend section 52.204-8 by--
0
a. Revising the date of the provision;
0
b. Redesignating paragraphs (c)(2)(i) through (c)(2)(vii) as paragraphs
(c)(2)(ii) through (c)(2)(viii), respectively; and
0
c. Adding a new paragraph (c)(2)(i).
The revised and added text reads as follows:
52.204-8 Annual Representations and Certifications.
* * * * *
Annual Representations and Certifications (Nov 2014)
* * * * *
(c) * * *
(2) * * *
----(i) 52.204-17, Ownership or Control of Offeror.
* * * * *
0
9. Add section 52.204-16 to read as follows:
52.204-16 Commercial and Government Entity Code Reporting.
As prescribed in 4.1804(a), use the following provision:
[[Page 31192]]
Commercial and Government Entity Code Reporting (Nov 2014)
(a) Definition. As used in this provision--
Commercial and Government Entity (CAGE) code means--
(1) An identifier assigned to entities located in the United
States or its outlying areas by the Defense Logistics Agency (DLA)
Contractor and Government Entity (CAGE) Branch to identify a
commercial or Government entity; or
(2) An identifier assigned by a member of the North Atlantic
Treaty Organization (NATO) or by the NATO Support Agency (NSPA) to
entities located outside the United States and its outlying areas
that the DLA Contractor and Government Entity (CAGE) Branch records
and maintains in the CAGE master file. This type of code is known as
an NCAGE code.
(b) The Offeror shall enter its CAGE code in its offer with its
name and address or otherwise include it prominently in its
proposal. The CAGE code entered must be for that name and address.
Enter ``CAGE'' before the number. The CAGE code is required prior to
award.
(c) CAGE codes may be obtained via--
(1) Registration in the System for Award Management (SAM) at
www.sam.gov. If the Offeror is located in the United States or its
outlying areas and does not already have a CAGE code assigned, the
DLA Contractor and Government Entity (CAGE) Branch will assign a
CAGE code as a part of the SAM registration process. SAM registrants
located outside the United States and its outlying areas shall
obtain a NCAGE code prior to registration in SAM (see paragraph
(c)(3) of this provision).
(2) The DLA Contractor and Government Entity (CAGE) Branch. If
registration in SAM is not required for the subject procurement, and
the offeror does not otherwise register in SAM, an offeror located
in the United States or its outlying areas may request that a CAGE
code be assigned by submitting a request at http://www.dlis.dla.mil/cage_welcome.asp.
(3) The appropriate country codification bureau. Entities
located outside the United States and its outlying areas may obtain
an NCAGE code by contacting the Codification Bureau in the foreign
entity's country if that country is a member of NATO or a sponsored
nation. NCAGE codes may be obtained from the NSPA if the foreign
entity's country is not a member of NATO or a sponsored nation.
Points of contact for codification bureaus and NSPA, as well as
additional information on obtaining NCAGE codes, are available at
http://www.dlis.dla.mil/Forms/Form_AC135.asp.
(d) Additional guidance for establishing and maintaining CAGE
codes is available at http://www.dlis.dla.mil/cage_welcome.asp.
(e) When a CAGE Code is required for the immediate owner and/or
the highest-level owner by 52.204-17 or 52.212-3(p), the Offeror
shall obtain the respective CAGE Code from that entity to supply the
CAGE Code to the Government.
(f) Do not delay submission of the offer pending receipt of a
CAGE code.
(End of Provision)
0
10. Add section 52.204-17 to read as follows:
52.204-17 Ownership or Control of Offeror.
As prescribed in 4.1804(b), use the following provision:
Ownership of Control of Offeror (Nov 2014)
(a) Definitions. As used in this provision--
Commercial and Government Entity (CAGE) code means--
(1) An identifier assigned to entities located in the United
States or its outlying areas by the Defense Logistics Agency (DLA)
Contractor and Government Entity (CAGE) Branch to identify a
commercial or government entity, or
(2) An identifier assigned by a member of the North Atlantic
Treaty Organization (NATO) or by the NATO Support Agency (NSPA) to
entities located outside the United States and its outlying areas
that the DLA Contractor and Government Entity (CAGE) Branch records
and maintains in the CAGE master file. This type of code is known as
an NCAGE code.
Highest-level owner means the entity that owns or controls an
immediate owner of the offeror, or that owns or controls one or more
entities that control an immediate owner of the offeror. No entity
owns or exercises control of the highest level owner.
Immediate owner means an entity, other than the offeror, that
has direct control of the offeror. Indicators of control include,
but are not limited to, one or more of the following: Ownership or
interlocking management, identity of interests among family members,
shared facilities and equipment, and the common use of employees.
(b) The Offeror represents that it [--] has or [--] does not
have an immediate owner. If the Offeror has more than one immediate
owner (such as a joint venture), then the Offeror shall respond to
paragraph (c) and if applicable, paragraph (d) of this provision for
each participant in the joint venture.
(c) If the Offeror indicates ``has'' in paragraph (b) of this
provision, enter the following information:
Immediate owner CAGE code:
-----------------------------------------------------------------------
Immediate owner legal name:--------------------------------------------
(Do not use a ``doing business as'' name)
Is the immediate owner owned or controlled by another entity?:
[--] Yes or [--] No.
(d) If the Offeror indicates ``yes'' in paragraph (c) of this
provision, indicating that the immediate owner is owned or
controlled by another entity, then enter the following information:
Highest-level owner CAGE code:
-----------------------------------------------------------------------
Highest-level owner legal name:
-----------------------------------------------------------------------
(Do not use a ``doing business as'' name)
(End of provision)
0
11. Add section 52.204-18 to read as follows:
52.204-18 Commercial and Government Entity Code Maintenance.
As prescribed in 4.1804(c), use the following clause:
Commercial and Government Entity Code Maintenance (Nov 2014)
(a) Definition. As used in this clause--
Commercial and Government Entity (CAGE) code means--
(1) An identifier assigned to entities located in the United
States or its outlying areas by the Defense Logistics Agency (DLA)
Contractor and Government Entity (CAGE) Branch to identify a
commercial or government entity, or
(2) An identifier assigned by a member of the North Atlantic
Treaty Organization (NATO) or by the NATO Support Agency (NSPA) to
entities located outside the United States and its outlying areas
that the DLA Contractor and Government Entity (CAGE) Branch records
and maintains in the CAGE master file. This type of code is known as
an NCAGE code.
(b) Contractors shall ensure that the CAGE code is maintained
throughout the life of the contract. For contractors registered in
the System for Award Management (SAM), the DLA Contractor and
Government Entity (CAGE) Branch shall only modify data received from
SAM in the CAGE master file if the contractor initiates those
changes via update of its SAM registration. Contractors undergoing a
novation or change-of-name agreement shall notify the contracting
officer in accordance with subpart 42.12. The contractor shall
communicate any change to the CAGE code to the contracting officer
within 30 days after the change, so that a modification can be
issued to update the CAGE code on the contract.
(c) Contractors located in the United States or its outlying
areas that are not registered in SAM shall submit written change
requests to the DLA Contractor and Government Entity (CAGE) Branch.
Requests for changes shall be provided on a DD Form 2051, Request
for Assignment of a Commercial and Government Entity (CAGE) Code, to
the address shown on the back of the DD Form 2051. Change requests
to the CAGE master file are accepted from the entity identified by
the code.
(d) Contractors located outside the United States and its
outlying areas that are not registered in SAM shall contact the
appropriate National Codification Bureau or NSPA to request CAGE
changes. Points of contact for National Codification Bureaus and
NSPA, as well as additional information on obtaining NCAGE codes,
are available at http://www.dlis.dla.mil/Forms/Form_AC135.asp.
(e) Additional guidance for maintaining CAGE codes is available
at http://www.dlis.dla.mil/cage_welcome.asp.
(End of Clause)
0
12. Amend section 52.212-3 by--
0
a. Revising the date of the provision;
0
b. Revising the introductory text of the provision;
0
c. Amending paragraph (a) by adding, in alphabetical order, the
definitions
[[Page 31193]]
``Highest-level owner'' and ``Immediate owner'';
0
d. Removing from the second paragraph of (b)(2) ``(c) through (o)'' and
adding ``(c) through (p)'' in its place; and
0
e. Adding paragraph (p).
The revised and added text reads as follows:
52.212-3 Offeror Representations and Certifications--Commercial Items.
* * * * *
Offeror Representations and Certifications--Commercial Items (Nov 2014)
The Offeror shall complete only paragraph (b) of this provision
if the Offeror has completed the annual representations and
certification electronically via the System for Award Management
(SAM) Web site accessed through http://www.acquisition.gov. If the
Offeror has not completed the annual representations and
certifications electronically, the Offeror shall complete only
paragraphs (c) through (p) of this provision.
(a) * * *
Highest-level owner means the entity that owns or controls an
immediate owner of the offeror, or that owns or controls one or more
entities that control an immediate owner of the offeror. No entity
owns or exercises control of the highest level owner.
Immediate owner means an entity, other than the offeror, that
has direct control of the offeror. Indicators of control include,
but are not limited to, one or more of the following: Ownership or
interlocking management, identity of interests among family members,
shared facilities and equipment, and the common use of employees.
* * * * *
(p) Ownership or Control of Offeror. (Applies in all
solicitations when there is a requirement to be registered in SAM or
a requirement to have a DUNS Number in the solicitation.
(1) The Offeror represents that it [--] has or [--] does not
have an immediate owner. If the Offeror has more than one immediate
owner (such as a joint venture), then the Offeror shall respond to
paragraph (2) and if applicable, paragraph (3) of this provision for
each participant in the joint venture.
(2) If the Offeror indicates ``has'' in paragraph (p)(1) of this
provision, enter the following information:
Immediate owner CAGE code:
-----------------------------------------------------------------------
Immediate owner legal name:
-----------------------------------------------------------------------
(Do not use a ``doing business as'' name)
Is the immediate owner owned or controlled by another entity:
[--] Yes or [--] No.
(3) If the Offeror indicates ``yes'' in paragraph (p)(2) of this
provision, indicating that the immediate owner is owned or
controlled by another entity, then enter the following information:
Highest-level owner CAGE code:
-----------------------------------------------------------------------
Highest-level owner legal name:
-----------------------------------------------------------------------
(Do not use a ``doing business as'' name)
(End of provision)
* * * * *
[FR Doc. 2014-12387 Filed 5-29-14; 8:45 am]
BILLING CODE 6820-EP-P